Company Name: SINGAPORE TECH ENGINEERING LTD
| Research House: DBS Vickers | Price Call: BUY | Target Price: 3.40 |
Shares of Singapore Technologies Engineering (STEG.SI) rose as much as 2.3% after its marine arm won a contract worth about $880 million to design and build four patrol vessels for Oman’s navy.
Brokerage DBS Vickers said the latest contract, ST Marine’s second significant win for the year, brings total orders secured year to date to $1.3 billion. DBS upgraded ST Engineering to buy from hold and raised its price target to $3.40 from $3.25.
ST Engineering shares were up 1.6% at $3.14. The stock has risen around 17% so far this year, outperforming a 12% rise in the broader market.
With $3.2 billion worth of new contracts secured in 2011 fiscal year, ST Engineering’s outstanding order book could reach a record level exceeding US$12.5 billion ($15.8 billion), providing healthy earnings visibility in 2012/2013, DBS said.
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